Are there any mortgage brokers on RS?

[tiger_handheld]

would like to get some info and maybe be a future client.

pm is key.

be prepared to teach a noob looking to get into the housing market. if you dont have time to answer questions , please don't bother.

[Zedbra]

PM sent

[Supersport]

You dont really need a mortgage broker to answer questions on what you can or can't afford. You should just ask away in here all your questions. A number of us own/mortgage our condo/houses and can give advice.

[09k20]

If you go to many bank sites, there is mortgage section with a how much can i afford calculator. What you can afford is determined mostly by your downpayment and income vs monthly debt obligations.

[tiger_handheld]

I dont know how accurate those calculators are =\

I only say this because , the basics say I need a 20% downpayment and along with a 70k income. However; I see a lot of places saying only 5% down payment needed and "PITH <$1300 month - cheaper than rent". I'm just wondering who to believe. I also get with <20% or was it 25% I would need to pay CMHC insurance. I want to know the cost benefit.

So I want a mortgage broker that will run some numbers and give me different scenarios etc. Almost like a financial advisor.

[MindBomber]

Originally Posted by tiger_handheld

I dont know how accurate those calculators are =\

I only say this because , the basics say I need a 20% downpayment and along with a 70k income. However; I see a lot of places saying only 5% down payment needed and "PITH <$1300 month - cheaper than rent". I'm just wondering who to believe. I also get with <20% or was it 25% I would need to pay CMHC insurance. I want to know the cost benefit.

So I want a mortgage broker that will run some numbers and give me different scenarios etc. Almost like a financial advisor.

My 0.02.

Usually, 'cheaper than rent' is code for a subsidized financing rate. After 5 years, the financing rate will raise to market levels and you'll see a significant increase in mortgage payment. Not a bad deal if you're a young professional, but you'll be kinda, sorta, fucked if your income doesn't increase significantly over the subsidized term to cover the inevitable increase. That's just my experience from having looked into buying one of those places (I ultimately chose to continue renting until I can buy land).

[tiger_handheld]

^ but these are not "new developments" sold by the developer. These are second hand properties sold by owners. So how does that work with subsidized mortgages?

If it's a new property I get that developer has special rate with TD/RBC whoever for X number years at X.xx rate.

[Supersport]

The easiest thing to do is just walk into any bank and find out how much they would pre-approve you for a mortgage.

They will do a credit score and you will advise them how much your downpayment is and your income and they will let you know either in a couple of hours or the next two days how much they are willing to lend you.

There you can start looking for a place. But remember that if you don't have 20% you have to pay mortgage default insurance. Remember to pull your RSP's out for First Time Home buyers. But you also have to be mindful that you have 15 years to pay it all back.

if you buy a condo, think about condo fees and etc. Everything cost a lot. Plus you can only get a 25 year amortization on a mortgage now.

Look at your current spendings too to see if you can afford a place, just don't understate your spendings when deciding if you can afford a place. You will probably not be able to cut any spendings out when you buy your own place. Your monthly fixed cost will most likely increase cause of internet/cable/food.

[quasi]

^

All good advice, it's always more then you think it is. I bought my first place with 5% down, unless somethings changed in the last 12 years it's viable. I can say it worked out for me but that was due to the market getting stupid, when we sold 5 years later we walked away with more money in our pocket then we originally paid for the place.

[tiger_handheld]

Originally Posted by Supersport

The easiest thing to do is just walk into any bank and find out how much they would pre-approve you for a mortgage.

They will do a credit score and you will advise them how much your downpayment is and your income and they will let you know either in a couple of hours or the next two days how much they are willing to lend you.

There you can start looking for a place. But remember that if you don't have 20% you have to pay mortgage default insurance. Remember to pull your RSP's out for First Time Home buyers. But you also have to be mindful that you have 15 years to pay it all back.

if you buy a condo, think about condo fees and etc. Everything cost a lot. Plus you can only get a 25 year amortization on a mortgage now.

Look at your current spendings too to see if you can afford a place, just don't understate your spendings when deciding if you can afford a place. You will probably not be able to cut any spendings out when you buy your own place. Your monthly fixed cost will most likely increase cause of internet/cable/food.

I was thinking of that but I don't want to walk into any bank and have my credit score run 5+ times. Thats why I thought a broker would help.

Also seeing some of those places listed as "PITH <$1300" - I can definitely do that. Cable/food/insurance etc. I'm sure I can get those down as well.

But where I run into issues is , lets say I cash out 25k in RRSP to avoid the CMHC , how much do I save per month compared to only putting down 5%?

Like is there some sort of excel templates around that I can play with? Also what about rates - they range from 2.87 - 3.95. which rate do I use. I have a fairly basic understanding of open/closed fixed/variable.

[Gnomes]

Check out this site, lots of good calculator and info and current rates:
Compare Canadian mortgage rates - Find the Best in Canada - RateHub.ca

[09k20]

The mortgage calculators on those bank sites are usually a little conservative but gives you a general idea on what is your price range. Banks being a 'A' lender are more conservative with total debt servicing thus can not offer what some 'B' lenders can qualify you with. Banks don't like risk.

IMO being a conversative guy myself, i would never over extend on a mortgage as rates are at a all time low right now. When rates move up, which it will; can you afford your mortgage then? There is a reason why we don't have the 35 and 30 year amortizations anymore.

As for mortgage rates, the interest rate is important. However the term you choose vs. you financial situation is more important. Don't just go for the lowest rate with the lowest term as when the mortgage matures, you maybe forced to take a higher rate then. Also the terms of the mortgage, can you double you payments? Pre-privilege payments? Portable? When you deal with 'B' lenders there is a fee?

I would definitely agree with Supersport to go see you banking representative to pre qualify for a mortgage. He/she will discuss some how much you can afford, CHMC fees if the downpayment is under 20%, first time homebuyers program and other various thing such as legal fees and other misc fees.

Other big misconception is owning a home is cheaper then rent then is why i should buy. When owning a home you pay property tax, strata if it's a condo, repair fees, levies, utilities and so on. When you buy or sell a home you pay realtor fees, your are restricted that you can't constantly move due to cost, property transfer taxes and fluctuating home prices. Speaking of prices, the days our parents buying a home and it doubles in price is over. Don't expect prices to always go up as most professionals are expecting it to drop. Our Deputy Chief Economist predicts that the market will not crash but drop and be stagnant for good number of years.

Owning a home in Vancouver is a luxury, and not for everyone.

[tiger_handheld]

Who the "B" lenders you speak of? Any reputed ones?

[tiger_handheld]

bumping this thread with a question:

Do these budgeted costs seem realistic for an individual looking to buy a condo outside of vancouver (Burnaby/LangleY)? These would be the min. everything else is extra (ie. car insurance entertainment gas etc..)



Mort/ Pro Tax 1400 Cable 100 Insurance 200 Utilities 120 Groceries 200 Strata 250

[dinosaur]

Cable/internet is more like $150. Insurance is cheaper (life & home). Groceries will be more. Depending on how old the building is, your strata will be more and will increase once a year.

You can't really say this other stuff is "extra"...I needs to be budgeted as well. Do you have a car or not? If you live in Langley, having a car is more of a necessity than other places. If no car, what about a transit pass....these things cost $100+ per month. They are not luxuries.

[tiger_handheld]

Originally Posted by dinosaur

Cable/internet is more like $150. Insurance is cheaper (life & home). Groceries will be more. Depending on how old the building is, your strata will be more and will increase once a year.

You can't really say this other stuff is "extra"...I needs to be budgeted as well. Do you have a car or not? If you live in Langley, having a car is more of a necessity than other places. If no car, what about a transit pass....these things cost $100+ per month. They are not luxuries.

By insurance, I was only thinking of condo insurance. Isn't there already mortgage insurance built into the mortgage payment for down payments <20% ? Or Do I need life insurance in addition to that?

Groceries - for one individual it'll be more than $200/mo? really?

It's so hard to predict strata. But from what i've seen $250 was out in langley for buildings 15-20 yrs. I'm hoping the small increase will be offset by salary increases ..

There is also another $1050/mo for gas , car insurance , personal care , entertainment , bank fees , gym pass , BC MSP etc..

[dinosaur]

Things that make a grocery store bill higher:

-garbage bags
-toilet paper
-paper towels
-ziplock bags
-shampoo, soap, deodorant, etc.
-condiments
-medications (advil, cold and flu, etc)

Yeah...there will be months when you can do your groceries for $200-ish...but there will be months where it is a lot more (what if you are having a dinner party or birthday party...you could easily spend $200 just on that). $10 here...$20 there...it adds up FAST.

At the end of the day....$200 is not a much as it seems. I probably spend $200 just on produce alone.

YES, you can do it on the cheaps....shop at dollar stores, eat very basic meals, buy in bulk, go to discount stores, keep an eye on sales, etc. It CAN be done...but it takes discipline and if you are going from living at home with your parents to living on a strict budget alone, it will be a shock!

CMHC insurance is loan insurance. You should try and save to make the 20% downpayment....why pay it when you don't have to? Are you in a big rush to buy something?

It is recommended that you buy life insurance when you buy your first home. Usually its about $30-40 a month...home insurance should be less than $100...iirc, its about $50.

You housing costs should be no more than 30% of your income. Now, in other parts of the country, this is easy...here? not so much but you should try and get it as close to that as possible

You should try and bring home at least 4500/month if possible. This will allow you to afford housing, entertainment, groceries and other incidentals, investments, and savings. Note, investments and savings are different. You should have 2 savings accounts: 1 for rainy days (vacations, mods to car, sports equipment, etc...) 2 for housing costs....you should have 3 months worth of living expenses at any given time.

[GLOW]

Originally Posted by dinosaur

Yeah...there will be months when you can do your groceries for $200-ish...but there will be months where it is a lot more (what if you are having a dinner party or birthday party...you could easily spend $200 just on that). $10 here...$20 there...it adds up FAST.

At the end of the day....$200 is not a much as it seems. I probably spend $200 just on produce alone.

damn right...hell last time i went to costco i planned on spending $60 and left with a $250 bill ...always happens at costco...

[young_howee]

Originally Posted by tiger_handheld

Who the "B" lenders you speak of? Any reputed ones?

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